Key Points:
- Monster Beverage anticipates a slight impact from tariffs due to high duties on imported aluminum for cans.
- The Midwest premium for aluminum has increased, raising costs for the company.
- CEO Hilton Schlosberg stated that the company will implement strategies to mitigate tariff impacts.
Insights:
Initially adopting a wait-and-see approach to tariffs, Monster Beverage is now facing higher costs due to duties on imported aluminum.
The company expects a modest impact from tariffs in the upcoming quarters.
Other food manufacturers, like Campbell’s, are also grappling with the effects of aluminum tariffs on their operations.